VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 12, 2010) - Geologix Explorations Inc. (the "Company" or "Geologix") (TSX:GIX)(FRANKFURT:GF6)(BERLIN:GF6)(STUTTGART:GF6)(MUNICH:GF6) is pleased to announce the positive results from the Tepal project's NI-43-101 Preliminary Economic Assessment Study ("PEA") completed by SRK Consulting Inc.("SRK") of Vancouver B.C. The study is based on the existing NI-43-101 resource estimation previously announced and filed on SEDAR, and does not take into consideration pending results from the current 5,000 metre drill program underway at the project. See the PDF version of this release or the Company's website for accompanying section and site plan (http://media3.marketwire.com/docs/geologix_oct_12.pdf). Significant highlights of the PEA and mine plan include:

Dunham Craig, President and CEO stated, "We are very pleased with the results of this PEA as they exceed our initial expectations of the potential economics of the existing resource and fit perfectly with our target criteria of developing a mid-sized or greater gold-copper production project. Using $900 gold and $2.75 copper as a base case, the current mine plan delivers a robust pre-tax economic model and NPV, and when you contemplate the significant upside to metal prices, along with the exploration expansion potential currently being explored through our ongoing drill programs, we see significant growth potential for this project. We plan on proceeding full tilt with developing Tepal as a core asset for the Company and its shareholders."

The Tepal PEA mine plan consists of conventional flotation concentration of 58.7 million tonnes of sulphide ore followed by smelting, and heap leaching 10 million tonnes of the oxide cap. All processes and equipment use standard technology that has been common mining practice for years. The PEA considers purchasing all new mining and plant equipment.

The Tepal Project PEA base case uses metal prices fixed at $900/oz. gold and $2.75 copper. Financial estimates are earnings before income tax and depreciation allowance ("EBITDA") and all dollars are $US. Highlights of the PEA are:

Table 1 - Tepal PEA Mine Plan**

PEA Base Case:

(NI-43-101)

Average

Average

Gold
Equivalent*

Tepal Mine Plan

Tonnes

Gold
g/t

Gold
Oz.

Copper
%

Copper
lbs.

oz.

Sulphide Ore Mined Open Pit

58,700,000

0.45

849,000

0.23

265,370,000

1,660,000

Oxide Ore Mined Open Pit

10,000,000

0.45

150,000

0.24

147,130,000

594,000

Total Ore Mined

68,700,000

989,000

351,000,000

2,061,000

**The PEA mine plan considers Indicated and Inferred resources and cannot be classified as "Reserves". Further infill drilling will be conducted for the purpose of improving Inferred Resources to Measured or Indicated categories.

The Current Tepal NI-43-101 Resource to PEA Mine Plan Conversion rate is 87%. Approximately 2/3 of the mine plan resources are in the Inferred Category. The average strip ratio is 0.75 tonnes waste to 1 tonne ore (0.75:1).

Table 2 – Tepal NPV and IRR at Base Case and Variable Metal Prices

Tepal PEA ($ Millions)

$900 Au,
$2.75 Cu

$1000 Au,
$3.00 Cu

$1200 Au,
$3.50 Cu

Project NPV (5% Discount)

$

258

$

357

$

555

Project IRR

28

%

35

%

49

%

The PEA mine plan is designed, and capital is estimated on a 25,000 tonnes per day ("tpd") processing plant facility and a 10,000 tpd heap leach facility. The current mine will provide an average of 23,000 tpd throughput leaving additional capacity for expansion in the facility for additional throughput potentially added through exploration. Average annual production for the life of the mine is displayed in Table 3 below:

Table 3 – Production: Base Case

Average Payable

Total

Production

Payable

Average Mine Production

Unit

per year

Production

Gold

oz.

68,500

616,000

Copper

lbs.

29,000,000

259,900,000

Gold Equivalent*

oz.

157,111

1,434,355

Table 4 –Base Case Average Operating Cost on a Co-Product Basis

Base Case Operating Cost ("OPEX") per Equivalent Payable Metal

OPEX per Au equivalent

$/oz Eq. Au payable

$358

OPEX per Cu equivalent

$/lb Eq. Cu payable

$1.09

Table 5 - Total Project Capital Cost***

Tepal PEA

Year 0

Year 1

Year 2

Year 3

Year 9

Total

Total Capital Cost

M$

$

105.1

$

181.5

$

3.3

$

1.7

$

1.5

$

293.0

***Total capital is inclusive of initial, sustaining, EPCM and closure costs. A 10% contingency has been applied.

Table 6 – Base Case Mine Plan Details

Tepal PEA Mine Plan Details - Life of Mine Averages

Mine Type

Open Pits (2)

Strip Ratio (Waste t/Ore t)

(Waste t/Ore t)

0.75:1

Oxide

Oxide tonnes processed

10,000,000

Daily Heap Leach Rate

6700 tpd

Oxide Gold Recovery

78.4%

Oxide Copper Recovery

14.3%

Oxide Processing

Crush 1/2", Heap Leach

Sulphide

Sulphide tonnes processed

58,700,000

Sulphide Plant Design Capacity

25,000 tpd

Sulphide Mine Plan Throughput

22,000 tpd

Sulphide Gold Recovery

60.7%

Sulphide Copper Recovery

87.4%

Sulphide Processing

Grind/Standard Flotation/Concentrate

Primary Grind Size

~140 micron

Flotation Concentration Ratio

110 t ore=1 t concentrate

Concentrate Grade

25.1% Cu, 33.8 g/t Au

Smelter Penalties

None

Operating Costs

Mining (Owner fleet)

$/t mined

$1.35

Mining (Owner fleet)

$/t processed

$2.37

Sulphide ore

$/t milled

$4.30

Oxide Ore

$/t leached

$4.31

G&A and sustaining capital

$/t milled

$0.63

Average operating cost

$/t ore

$7.35

Royalties

NSR Royalty

2.5%

Payback at Variable Metal Prices

Base Case: $900 Au, $2.75 Cu

4.4 years

$1000 Au, $3.00 Cu

3.9 years

$1200 Au, $3.50 Cu

3.3 years

Mine Life

9 years

Mr. Gordon Doerksen, P. Eng., PE, Principal Consultant and Project Manager, SRK Consulting Limited, Vancouver, BC, Canada and Mr. Dunham L. Craig, P.Geo, President and CEO of Geologix Explorations Inc., Vancouver, BC, are 'qualified persons' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Properties of the Canadian Securities Administrators, have reviewed and verified the data contained in this news release.

Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral resource opportunities with the potential to host world class mineral deposits. The Company's primary focus is the Tepal Gold-Copper Porphyry Project in Michoacán State, Mexico, where the Company is aggressively exploring for potential resource expansion, of the project in its ongoing effort to upgrade and increase the scale of this emerging project.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.